Several state attorney generals, including those from Florida and Connecticut, are conducting a coordinated investigation of firms’ alleged anticompetitive practices in connection with municipal bond-related guaranteed investment contracts, one company and several sources said Monday.

XL Capital, Ltd, the Bermuda-based insurer, disclosed the investigation in a 10-K financial statement filed with the Securities and Exchange Commission on Monday. The company said its subsidiaries last month received a subpoena from the Connecticut attorney general and an “antitrust civil investigative demand” from the Florida Attorney General “in connection with a coordinated multi-state attorneys general investigation into…matters referenced in…[Department of Justice] and SEC subpoenas.”

A Florida official confirmed that the state’s attorney general’s office is part of “a multi-state investigation into the GIC investments…that deals with an alleged conspiracy to fix the returns on guaranteed investment contracts by various financial institutions.”

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.